Legislators Often Gain by Bundling a Number of Projects Benefiting

question 161

Multiple Choice

Legislators often gain by bundling a number of projects benefiting local districts at the expense of general taxpayers. Such legislation is called

• A) market failure legislation.
• B) the rational ignorance effect.
• C) public goods legislation.
• D) pork-barrel legislation.

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Definitions:

Asset Revaluation Reserve

An equity account that records increases in the carrying amount of a company's assets, reflecting changes in value over time.

General Reserve

A reserve fund set aside out of profits for the purpose of strengthening the company's financial position and fulfilling future needs or contingencies.

Acquisition Excess

The amount by which the purchase price of an acquired asset or business exceeds its fair value, often recognized as goodwill.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, where the investment is recorded at cost and adjusted for the investor's share of the investee's profit or loss.